Step by step registration with passwordless and phone verification

I have some not trivial registration process, following the schema

Can I implement this flow completely on auth0? I will be thankful if you clarify what process I can implement on auth0 and what process I need to implement on my app

The first idea was creating the first signup form via my own API, but then appears the next problem, I have to check if the user exists from my API before sign up to auth0 but I am not sure that it makes sense because a user can bypass this check.

I thought about using passwordless functionality and maybe hooks can help me.